The following are the importance of branch account except
Answer Details
The importance of branch accounts includes enabling an organization to determine which branch is making either profit or loss, allowing proper control over the branch by the head office, and assisting the organization to determine the performance of a branch manager.
However, the option that is not an importance of branch accounts is "it allows fraud and wastage of resources". This is because branch accounts are designed to increase the level of accountability and transparency in an organization's operations, especially in cases where the organization operates from multiple locations. By having separate branch accounts, it is easier to detect any fraudulent activities or wastage of resources in any particular branch. Therefore, branch accounts do not allow fraud and wastage of resources; instead, they serve as a control mechanism to prevent such occurrences.